The document discusses the challenges faced by small-scale fishermen in Central Bangka, Indonesia, including poverty, lack of access to resources, and reliance on middlemen, which hinders their socioeconomic progress. It explores the potential of social capital and cooperatives to alleviate poverty by enhancing community organization and cooperation among fishermen. The study highlights the importance of integrating these elements to improve livelihoods and achieve sustainable socioeconomic development in coastal communities.

1. Social Capital,
Cooperative, and Poverty
Alleviation
in Central Bangka,
Indonesia
FIRDAUS BASBETH
MOHAMMAD IMRON
SUGENG HARI WISUDO
MULYONO BASKORO
2024
International
Communication,
Economics, Organization
Social Sciences
Congress
PPM SOM
IPB UNIVERSITY

2. • In Indonesia, the majority of fishermen (those who make their living from fishing)
come from low-income families (Ariansyach, 2017). SSF are one of the most
vulnerable members of society. Significant problems include illiteracy and
unemployment, as well as inadequate knowledge about current fishing technologies
(Suwandi & Harlyandra, 2024).
• This deadly loop is complicated by the absence of adequate infrastructure, both in
terms of logistics and funds. As a result, fishermen are being exploited by
intermediaries or middlemen who function as money lenders, dealers, and
subcontractors (Ahsan et al., 2016; Mutiar et al., 2018; Suwandi & Harlyandra, 2024).
I. Introduction

3. • Despite possessing great potential in aquaculture, the SSF could not exploit it to
significantly improve their socioeconomic condition owing to the absence of
organizational assistance such as infrastructure and funding (Kalikoski et al., 2019;
Stacey et al., 2021).
• According to FAO (2002), about 5.8 million fishermen belong below the poverty line.
So-called fisheries cooperatives and SSF guidelines should focus on achieving zero
hunger and poverty (Halim et al., 2020; Wilson, 2017) According to SSF guidelines,
local fishermen can form organizations (known as co-operatives) to eliminate poverty
(Nakamura et al., 2021; Said & Chuenpagdee, 2019; Stacey et al., 2019).
I. Introduction

4. • Poverty in coastal communities is caused by several factors. Mutiar et al. (2018) state
that rural coastal communities rely on fisheries and agriculture. These are vulnerable
to coastal erosion, storms, and other dangers. This causes income instability in coastal
regions. Coastal towns also rely on the sea, which necessitates sustainable economic
growth. (Mutiar et al., 2018). The people think that there is still fortune in the ocean.
This assumption creates challenges in managing the community's economy (Suwandi
& Harlyandra, 2024).
• Another problem is that there is a period when fishermen cannot do fishing activities
and that is when the fishermen's lean season begins.
I. Introduction

5. • Many fishing families do for alternative sources of finance to fulfill their needs
borrowing from middlemen. The relationship between middlemen and fishermen
itself is quite easy to find due to several factors such as the absence of other
alternative sources of finance and limited market access. Middlemen often build
prolonged social relationships to ensure fishermen's attachment to them (Suwandi &
Harlyandra, 2024).
• This makes it more difficult for fishermen to improve their welfare. For this reason, a
solution is needed to break the marketing chain to middlemen by developing
fishermen by forming fishermen groups.
• There are 12 cooperatives in central Bangka, including one in Sungai Selan, however,
it has not improved the population's welfare because they only operate as savings and
loans.
I. Introduction

6. • Central Bangka Regency is one of the districts in the Bangka Islands with a lot of
potential for fish resources (Kurniawan et al., 2019).
• The district covers an area of ± 227,911.00 acres, surrounded by 12 small islands
with a coastline length of ± 195 km. most of the population (3200) works as SSF.
• The fisheries sector in Central Bangka Regency benefits from the presence of fish
landing bases (PPI), and the establishment of the Indonesian Fishermen Cooperative
(KONELI) in 2018.
• The cooperative has 120 members, all of whom engage in capture fishing. The
cooperative does not get fish supplies, as these are purchased by businesses with
cargo ships in the middle of the ocean.
I. Introduction

7. • The most critical aspect of the lives of fishermen in coastal regions is the seasonal
variability in fishing activities at sea. The fishing season is particularly susceptible to
fluctuations, with the famine season posing a significant challenge for fishermen in
terms of income generation due to the inherent difficulties in fishing (Alfatah, 2022)
During the fishing season, a source of revenue is generated through the sale of catch
to middlemen or intermediaries.
• These parties serve two distinct roles: as fish traders and as providers of loans.
Fishermen are required to sell their fish at a significantly reduced price to repay the
loan.
• Poverty among fishermen is influenced by a variety of variables, one of which is the
extremely long chain of the fisheries sector. This circumstance causes fishermen to
experience injustice because intermediaries who contribute capital decrease prices
(Bidayani et al., 2023)
I. Introduction

8. • In light of the first Sustainable Development Goal (SDG), to eradicate poverty this
article explores the potential of integrating social capital, and cooperation as a
sustainable approach to alleviating rural poverty.
• This study examines the potential contribution of social capital, and the mediating
role of small-scale fishermen cooperatives in reducing poverty in Central Bangka,
Indonesia.
• To evaluate the effect of Social capital on poverty alleviation
• To analyze the effect of SSF Cooperative has a positive effect on poverty alleviation
• To evaluate the mediating role of SSF cooperatives on the relationship between social
capital and poverty alleviation
I. Introduction

9. 2.1 Poverty
• Poverty as a multidimensional concept is defined as the deprivation of human dignity,
opportunities, and satisfaction across a range of areas, including food, nutrition,
power, education, health, traffic, and income (Alkire & Foster, 2011; Arndt et al., 2016;
Chen & Ravallion, 2008; Si et al., 2015).
• Singer (2006) posits that those experiencing poverty lack the requisite competence,
confidence, power, and opportunities to enhance their lives and improve their
circumstances.
• Those living in poverty often have restricted access to employment opportunities, and
consequently, a lack of hope for a more secure future.
II. Literature Review

10. 2.2 Social Capital
• There's evidence that social capital can help economic growth and performance
(Hanushek & Woessmann, 2020; Muringani et al., 2021). Some studies in developing
countries have shown that social capital can play an important role in reducing poverty.
For example (Woldehanna et al., 2022), found that social capital was an important
factor affecting household income in rural Ethiopia. Similarly, (Wu et al., 2023) found
that social capital affected welfare by reducing the chances of households in China
falling into poverty. Nguyen et al. (2020) found that entrepreneurial orientation assists
in transforming social capital into organizational performance
• Kehinde et al. (2021) in Southwestern Nigeria and (Yunus, 2021) in Aceh, Indonesia
illustrated that social capital, as measured by group participation, has a positive effect
on household expenditure (which serves as a proxy for poverty).
II. Literature Review

11. • Social capital is the way people interact with each other and the institutions around
them. It's about the relationships, solidarity, empathy, and goodwill people experience
in their everyday lives. Scholars agree that social capital refers to networks, shared
norms, and values that help people to work together. (Adepoju, 2019; Nasution et al.,
2015).
• Social capital is a key driver of economic growth and human well-being, as it facilitates
the smooth functioning of social and economic systems (Adepoju, 2019). Social
capital is a potential source of economic growth and economic performance (Pham &
Mukhopadhaya, 2022). Social capital creates a synergy that benefits all members of a
community (Nosratabadi et al., 2020). Some studies in developing countries showed
the important role of social capital in reducing poverty (Kehinde et al., 2021; Osei &
Zhuang, 2020; Pham & Mukhopadhaya, 2022). Social capital was an important factor
affecting household income in rural Terengganu (Abdul-Hakim et al., 2010; Mauzud,
2022).
II. Literature Review

12. 2.3 Cooperative and Poverty
• Cooperatives began with the idea that people can achieve more together than alone
(Mnguni & Mdiniso, 2024). Gava et al. (2021) highlighted the cooperative contribution to
the elevation of rural poverty in Bosnia and Herzegovina. Cooperatives can help
smallholder farmers by providing marketing, input distribution, credit, and information.
This can help fishermen adopt new technologies more quickly (Manda et al., 2020).
Conversely, cooperatives have also the potential to act as powerful economic engines, both
in terms of job creation and poverty alleviation, within rural communities (Candemir et al.,
2021; Dash et al., 2020; Gava et al., 2021; Shen et al., 2022).
• The establishment of cooperatives can help fisherman improve their skills and learn about
technology, marketing, and management. Cooperatives can be established to solve financial
problems and improve productivity, processing, storage, and transportation capabilities
(Sanyal et al., 2023). Cooperatives can play an important role in supporting economic
advancement for marginalized small-scale fishermen.
II. Literature Review

13. 2.4 Social Capital and SSF Cooperative
• Scholars have identified social capital factors as a key contributor to the economic resilience
of small-scale fisheries cooperatives. According to (Islam et al., 2023) small-scale fishers in
Langkawi Island have better access to social capital. Among the social capital factors,
relationships, networks, and community participation were the main things that helped
fishers' households do well. However, according to Nasution et al. (2015), the relationship
between poverty and social capital in rural Indonesia has two-way causalities. Participating
in social activities, or having social capital, has been shown to increase spending and lower
poverty. It also discovered that people's social capital is influenced by their spending. This
implies a connection between poverty and social capital in rural regions.
• The study by Kustepeli et al. (2023) discovered that agricultural development cooperatives
play a big part in building and strengthening social capital, and supporting the livelihoods of
rural households.
• .
II. Literature Review

14. II. Literature Review
Based on this research model, the following hypotheses are developed:
Hypothesis 1 (HI): Social capital has a positive effect on poverty alleviation
Hypothesis 2 (H2) SSF Cooperative has a positive effect on poverty alleviation
Hypothesis 3 (H3): SSF cooperative mediates the relationship between social
capital and poverty alleviation

15. Number of households in the three district is approximately 400 households. For this
study, it is suggested to use a proportionate sampling method, to collect a sample of
about 40 households in these three districts. This study examined how social capital and
cooperation can help to reduce poverty. A path analysis with a structural equation model
is to be used to explore the relationship between variables.
III. Methodology

16. • The concept of social capital, and the resulting synergy from the interactions of
community members, has been demonstrated to enhance poverty alleviation and the
growth of cooperatives.
• This study presents a comprehensive and integrated picture of how social capital
affects poverty alleviation and cooperative growth. Its main contribution is to
demonstrate how social capital can improve cooperative growth and poverty
alleviation.
• The framework also present a basis for future research. Future research can apply a
quantitative research methodology to test the hypotheses presented in this study and
test this study’s conceptual model.
V. Conclusion and Recommendations

17. Thank You for Your Kind
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